The Legal Environment of Business: Text and Cases
The Legal Environment of Business: Text and Cases
9th Edition
ISBN: 9781305764460
Author: Frank B Cross/ Roger LeRoy Miller
Publisher: CENGAGE C
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Chapter 25, Problem 3CT
Summary Introduction

Case summary:The Environmental Protection Agency (EPA) developed two rules namely, Phase I and Phase II. Phase I rule provides for the restriction of water inflow to a level equivalent to a level achieved through a closed-cycle recirculating cooling system. Phase II rule applies "national performance standards" to over 500 existing plants. They pleaded that converting these plants to closed-cycle systems will bear more costs and fewer benefits. Various environment organizations were aggrieved by this decision and they challenged phase II rule in US court.

To find: Necessity to draw a line on the nation’s border while analyzing the actions affecting the environment.

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An individual is investing in a market where spot rates and forward rates apply. In this market, if at time t=0 he agrees to invest £5.3 for two years, he will receive £7.4 at time t=2 years. Alternatively, if at time t=0 he agrees to invest £5.3 at time t=1 for either one year or two years, he will receive £7.5 or £7.3 at times t=2 and t=3, respectively. Calculate the price per £5,000 nominal that the individual should pay for a fixed-interest bond bearing annual interest of 6.6% and is redeemable after 3 years at 110%. State your answer at 2 decimal places.
The one-year forward rates of interest, f+, are given by: . fo = 5.06%, f₁ = 6.38%, and f2 = 5.73%. Calculate, to 4 decimal places (in percentages), the three-year par yield.
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